Jim Cramer, the host of Mad Money, said on Tuesday that if Oracle begins to show spending restraint, it could cool the massive artificial intelligence outlays coming from other hyperscalers.
“Wall Street has concluded that companies involved in artificial intelligence are paying too much money to build out the data centers. The hundreds of billions of dollars that they’re all spending has turned off money managers and driven them toward other tech companies or even other growth companies from different sectors, including industrials, drugs, anything that has nothing to do with data. In fact, the data center is now a scarlet letter, and Wall Street loves industrials that have zero contact with these money pits.”
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Cramer added that Oracle and OpenAI stand out as renegades in this environment, and noted that the show of force from both groups is unnecessary. He added that if Oracle shows discipline, every other hyperscaler could slow spending, which will lead to a more reasonable pace overall. He said that any company assuming the entire buildout is already “baked into their numbers right now is “overestimating” itself.
“But here’s the bottom line: Listen to me. I’m not saying it won’t be rocky. I am saying that it will end better for OpenAI and Oracle than it did for Sonny Corleone. And the truce that follows will allow everyone to skate in their own lanes, cut their CapEx budgets, make a huge amount of money, and then see their stocks really fly. Meta, Microsoft to the moon. But things could get uglier first without that five-family truce that must be called by Oracle in conjunction with the perpetually Sonny OpenAI, or we’re still going to go lower.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on December 16. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2025, which was taken from Insider Monkey’s database of 978 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer Talked About These 8 Stocks Recently
8. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks Jim Cramer talked about recently. Cramer mentioned the company while discussing the talks of a bubble in the data center business, as he remarked:
“Now, why is this migration so important? Because you have all these people saying that a bubble may be developing in the data center and anything connected to it. But anyone with two eyes can see that the bubble burst two months ago for all but Google. And that’s because Google won.”
Alphabet Inc. (NASDAQ:GOOGL) provides tech-related products and services, including search, advertising, cloud computing, AI tools, and digital content platforms like YouTube and Google Play. Cramer mentioned the stock during the December 15 episode and said:
“Almost every single tech company I follow has a monstrous set of rivals spending tens of billions of dollars to dominate the particular industry. Now, in one case, that spending can be worth it. Google spent enough to keep the comers out of the search category. It’s been allowed to write a check to Apple to make it the default search. That cost them $20 billion per year, and it’s money well spent now that the contract has been blessed by a federal judge who must have lost his mind. I now expect Google will also pay Apple to make Gemini their default AI chatbot. Ooh, that judge will like it even more. At that point, even OpenAI playing with… other people’s money may not be able to compete… Alphabet’s the only one that seems to be winning.I don’t know. I mean, we need more winners, but it’s just Alphabet.”
7. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 103
Johnson & Johnson (NYSE:JNJ) is one of the stocks Jim Cramer talked about recently. Cramer mentioned the stock during the episode and said:
“These groups were the salvation of this market when the year of magical investing ended, and the super speculative stocks started coming back to earth, they’re still doing it, followed by the data center plays. These were the groups that saved you. We don’t talk about this migration much, but all you need to know is just to look at the stocks of Merck and Johnson & Johnson since the data center collapse, and you’ll know exactly what I mean. I could easily argue that nothing good has happened to these companies that can explain their last 10% upside, except that Meta, Microsoft, and NVIDIA have all peaked out, perhaps for now, perhaps for a long time. And the money rotated to other growth areas.”
Johnson & Johnson (NYSE:JNJ) develops and sells healthcare products, including pharmaceuticals and medical technologies, with treatments in immunology, oncology, neuroscience, cardiovascular care, and infectious diseases. In addition, the company provides surgical systems, orthopaedic solutions, cardiovascular devices, and vision care products.
6. Block, Inc. (NYSE:XYZ)
Number of Hedge Fund Holders: 64
Block, Inc. (NYSE:XYZ) is one of the stocks Jim Cramer talked about recently. Cramer highlighted the stockduring the episode and remarked:
“When I was writing How to Make Money in Any Market, I tried to isolate growth stocks where I could find them. I was concerned that if every growth stock I highlighted was linked to the data center, you’d end up with a portfolio that could crush you the moment the data center story went out of style in the Wall Street fashion show, which of course is exactly what happened… There were the much beloved fintechs, like Affirm. See that stock? Woo. Or Square, which never seems to go out of fashion, even though it’s now called Block. There is Lemonade, Intuit.”
Block, Inc. (NYSE:XYZ) provides payment, commerce, and financial services through Square and Cash App. The company offers point-of-sale tools, banking, peer-to-peer payments, investing, and buy-now-pay-later solutions. Cramer discussed the company during the November 19 episode and said:
“How about all these fintech… Well, hey, I got one for you. How about Block, which is the old Square? At an analyst meeting today, Block just announced some aggressive growth targets for the next three years, sharply better than expected. Block is a real profitable business, and its stock wasn’t far from its low either, aided by a $5 billion announced buyback. This $38 billion stock ultimately vaulted 7.5%. Yes, it was the best performing in the S&P 500, not bad, just beating out GE Vernova.”
5. Texas Capital Bancshares, Inc. (NASDAQ:TCBI)
Number of Hedge Fund Holders: 30
Texas Capital Bancshares, Inc. (NASDAQ:TCBI) is one of the stocks Jim Cramer talked about recently. Cramer noted the stock’s noteworthy performance during the episode, as he stated:
“The bank stocks have finally come into their own. That includes the regionals. Take Texas Capital Bancshares, that’s the parent of Texas Capital Bank… the stock is up 23% in just the past two months. In January of 2021, Rob Holmes took over as CEO after a three-decade stint at JPMorgan Chase. He pushed through an ambitious turnaround plan to transform Texas Capital into a full-service financial firm that does more than just commercial banking. Since then, get this, the stock’s up nearly 43%, trouncing the 16% gain you would’ve gotten from the State Street SPDR Regional Banking ETF. Plus, when the company reported in October, the results were phenomenal.”
Texas Capital Bancshares, Inc. (NASDAQ:TCBI) provides commercial and consumer banking, investment banking, and wealth management services. The company offers lending, deposit, treasury, capital markets, and advisory solutions.
4. Target Corporation (NYSE:TGT)
Number of Hedge Fund Holders: 52
Target Corporation (NYSE:TGT) is one of the stocks Jim Cramer talked about recently. Cramer highlighted the stock while discussing retail sales. The Mad Money host said:
“Let’s talk about retail sales. So important. We got October retail sales at the same time as the jobs report, and they were slightly weaker than expected. October retail sales were unchanged month over month, and September retail sales growth was also revised downward by 10 basis points. However, some of the alternative readings for retail sales were a bit better. October retail sales excluding autos grew 0.4% month over month, better than the expected 0.25%. Excluding both autos and gas, October retail sales were up 0.5%, also better than expected. That’s nice. But frankly, who cares about October retail sales mid-December, right? We gotta worry about the holiday. As I’ve mentioned before, the retailers generally had more positive things to say about the state of their businesses when they reported in November. Aside from a few one-off cases, like Target wasn’t so good, Burlington Stores, and then, one that the trust owns, Home Depot. Rates are too high for them. Plus, the post-Thanksgiving holiday shopping season got off to a strong start. In the end, I still believe that the consumer’s not feeling great but still spending at a decent clip, at least for the holidays.”
Target Corporation (NYSE:TGT) is a retailer that sells clothing, beauty items, groceries, electronics, home goods, and everyday essentials.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer talked about recently. Cramer highlighted why the stock keeps “going down,” as he stated:
“I have good news, though, for the heavy hitters in AI, which brings me to The Godfather. In the movie, Don Corleone agrees to a peace with the other five families to end the war that killed his hotheaded son, Sonny Corleone… Now, you may think that the five family truce would be bad news for the big data centers, but you would think wrong when it comes to Broadcom or NVIDIA. Both will get plenty of business. The truth is, it was never feasible to build all these data centers that are needed. That’s why everyone hates the stocks. It’s exactly why these two stocks keep going down. Not until Oracle blinks, and it will.”
NVIDIA Corporation (NASDAQ:NVDA) develops accelerated computing and AI platforms, GPUs for gaming and professional use, cloud services, robotics and embedded systems, and automotive technologies. Cramer mentioned the stock during the December 15 episode and said:
“Understand, I’m not trying to say that tech stocks can’t be owned here. We own a bunch of them for the Charitable Trust, we always have, along with NVIDIA and Broadcom. I really like them. I’m just a lot less enthusiastic than I used to be because there’s competition all over the place, and they’re spending like crazy, and the stocks have still had big moves.”
2. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 122
Oracle Corporation (NYSE:ORCL) is one of the stocks Jim Cramer talked about recently. Cramer noted that the company has a “huge amount of debt” and remarked:
“But how about the rest of tech? The data center, the hyperscalers, the proprietary semis, the ones we loved for so long, what happens to those?… The answer can arguably be found in the greatest movie of all time. The answer can be found in The Godfather… There’s something lurking here that could end the war and allow these stocks to come back to life, and it’s called discipline. In September, Oracle raised $18 billion in bond market, okay? Their bond issuance has drawn scrutiny in the form of aggressive buying of credit default swaps.
What does that mean? It’s basically insurance that pays off if the company defaults on its obligations… except you don’t need to be a bondholder to buy these insurance policies. These people are betting against Oracle itself because of the stupid amount of money that it’s spending. Oracle already has a huge amount of debt. Their balance sheet’s not that good. At some point, they’ll heed the warning of the bond market and slow things down, or else. And they don’t want the or else. These data centers cost a fortune, and even the best builder stumbles… Oracle can’t risk blowing up its balance sheet for Sam Altman. That’s when and how we’re going to get out of this morass. Oracle blinks… Oracle shows discipline, and it must because the bond market is a cruel task master.”
Oracle Corporation (NYSE:ORCL) provides cloud and on-premise software, databases, and IT infrastructure to help businesses manage operations. The company also offers hardware, consulting, and support services.
1. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 105
Micron Technology, Inc. (NASDAQ:MU) is one of the stocks Jim Cramer talked about recently. Cramer noted that storage stocks like Micron have an “immense amount of demand.” He commented:
“Honestly, it does seem pretty hopeless for the data center stocks. Consider, four out of the five top-performing in the S&P 500 this year are tech… Sandisk, Western Digital, Seagate, Micron. Why these? Because they’re plain old-fashioned data storage companies with an immense amount of demand and not nearly enough supply. And the storage companies are inherently boom and then bust, always have been, always will. Right now, there’s not enough capital equipment to relieve the tightness in the market, so these companies can put through endless price increases. But the moment there are enough machines to manufacture these products, their stocks will indeed plummet as they always do. Micron reports after the close tomorrow night. And while it is one of my absolute favorite stocks, and I think it’ll have an amazing quarter, there will be analysts who try to call a top.”
Micron Technology, Inc. (NASDAQ:MU) develops memory and storage solutions, including DRAM, NAND, and SSD products, under the Micron and Crucial brands.
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